The Pension Benefit Guarant Corporation (PBGC) June 30 released its FY 2013 Projections Report, which analyzes the anticipated financial condition of the agency.
“Despite substantial economic and market gains, multiemployer pension plans covering about 1.5 million people are severely underfunded, threatening benefit cuts for current and future retirees,” PBGC said. “By comparison, the financial situation for private single-employer plans, which cover about 30 million participants, is projected to improve.”
Rep. John Kline (R-MN), Chairman of the House Education and the Workforce Committee, along with other senior Democrats and Republicans on the Committee, issued a joint statement following the report’s release. “The latest PBGC report confirms in stark detail the significant challenges confronting the multiemployer pension system,” they wrote. “The systemic crisis we face threatens countless workers, employers, and retirees, and could ultimately harm American taxpayers, as well. We have an obligation to advance reforms that will modernize the system, encourage employer participation, protect taxpayers, and offer new tools to help rescue troubled plans. We continue to work together to find common ground and a responsible legislative solution. The American people deserve nothing less.”